XML 74 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.8

STOCK PURCHASE WARRANTS AND OPTIONS | 12 Months Ended
--- | ---
Dec. 31, 2013
STOCK PURCHASE WARRANTS AND OPTIONS [Abstract] |
STOCK PURCHASE WARRANTS AND OPTIONS | NOTE 15 - STOCK PURCHASE WARRANTS AND OPTIONS Warrants Following is a summary of warrants for Class A common shares outstanding:
|  | December 31, 2013 |  | December 31, 2012 |
|  | Shares |  | Weighted Avg Exercise Price |  | Shares |  | Weighted Avg Exercise Price |
Outstanding at beginning of year |  |  | 19,860,000 |  | $ | 0.031 |  |  | 14,700,000 |  | $ | 0.033 |
Granted |  |  | 9,999,375 |  | $ | 0.012 |  |  | 13,410,000 |  | $ | 0.020 |
Exercised |  |  | - |  |  | - |  |  | - |  |  | - |
Forfeited |  |  | - |  |  | - |  |  | 8,250,000 |  | $ | 0.031 |
Expired |  |  | - |  |  | - |  |  | - |  |  | - |
Outstanding at end of year |  |  | 29,859,375 |  | $ | 0.031 |  |  | 19,860,000 |  | $ | 0.031 |
Exercisable at end of year |  |  | 29,859,375 |  | $ | 0.031 |  |  | 19,860,000 |  | $ | 0.031 |
Weighted average grant date fair value |  |  |  |  | $ | 0.016 |  |  |  |  | $ | 0.016 |
Weighted average remaining contractual term |  |  |  |  |  | 3.02 |  |  |  |  |  | 3.77 |
On October 24, 2013, warrants to purchase 3,750,000 shares of Class A common stock at $0.012 per share were issued to an accredited investor in conjunction with a private offering (See Note 14). On December 22, 2013, warrants to purchase 6,249,375 shares of Class A common stock at $0.012 per share were issued to an accredited investor in conjunction with a private offering. (See Note 14). On August 15, 2012, warrants to purchase 3,960,000 shares of Class A common stock at $0.033 per share were issued to a related party in conjunction with a convertible note. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, risk free interest rate of 0.102% and a term of 5 years. On May 11, 2012 warrants to purchase 825,000 shares of Class A common stock at $0.033 per share were issued to an existing accredited investor in conjunction with a convertible note. As consideration for this further investment, the 750,000 existing warrants with a strike price $0.033 were cancelled and reissued with a strike price of $0.025 per share. The new and existing warrants were both valued on the modification date using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, a risk free interest rate of 0.89% and a term of 5 years and 3 years, respectively. There was no additional expense resulting from the modification. On February 24, 2012 warrants to purchase 4,125,000 shares of Class A common stock at $0.033 per share were issued to an existing accredited investor in conjunction with a convertible note. As consideration for this further investment, the 3,750,000 existing warrants with a strike price $.033 were cancelled and reissued with a strike price of $0.025 per share. The new and existing warrants were valued on the modification date using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, a risk free interest rate of 0.89% and a term of 5 years. There was no additional expense resulting from the modification. Options Following is a summary of options outstanding:
|  | December 31, 2013 |  | December 31, 2012 |
|  | Shares |  | Weighted Avg Exercise Price |  | Shares |  | Weighted Avg Exercise Price |
Outstanding at beginning of year |  |  | 350,000 |  | $ | 0.035 |  |  | - |  |  | - |
Granted |  |  | 650,000 |  | $ | 0.020 |  |  | 350,000 |  | $ | 0.035 |
Exercised |  |  | - |  |  | - |  |  | - |  |  | - |
Forfeited |  |  | - |  |  | - |  |  | - |  |  | - |
Expired |  |  | - |  |  | - |  |  | - |  |  | - |
Outstanding at end of year |  |  | 1,000,000 |  | $ | 0.030 |  |  | 350,000 |  | $ | 0.035 |
Exercisable at end of year |  |  | 100,000 |  | $ | 0.035 |  |  | 100,000 |  | $ | 0.035 |
Weighted average grant date fair value |  |  |  |  | $ | 0.03 |  |  |  |  | $ | 0.04 |
Weighted average remaining contractual term |  |  |  |  |  | 4.11 |  |  |  |  |  | 4.59 |
The total unrecognized option expense to be recorded over the remaining 2 years is $6,667. On January 1, 2013 the Company granted options to purchase 650,000 shares of Class B common stock to its independent directors. The options have an exercise price of $0.02 per share, a five-year term, vest on January 1, 2014¸ and are subject to continuing service as a director. The options were valued using the Black-Scholes model using a volatility of 508.21%, an expected term of 5 years and an interest rate of 0.76%. The options are valued at $14,500 and are being recognized as expense over the requisite service period. On August 2, 2012, the Company issued options to purchase 250,000 shares of Class B common stock valued at $0.04 per options for a total of $10,000 to its President and CFO. The options vest equally every six months over a three year period. The options were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, risk free interest rate of 0.61% and a term of 5 years. The expense in 2012 was not material. On August 2, 2012, the Company issued options to purchase 100,000 shares of Class B common stock to its new Chief Operating Officer. The options vest equally every six months over a three year period. The options were valued at $0.04 per option using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, risk free rate of 0.61% and a term of 5 years. On December 21, 2012, the COO was terminated. As part of the settlement agreement, all 100,000 options immediately vested and the Company recognized $4,000 total expense.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration